Acknowledgements:

Thanks to Laura Saterfield and Coral Manning at the Department

of Children and Families (DCF) for their generous assistance in

providing YoungStar data; most of the data in this report was

provided by DCF. Erin Gernetzke of the Wisconsin Early

Childhood Association (WECA) and Jill Hoiting and Penny Chase

of the Supporting Families Together Association (SFTA) also

provided helpful information. SFTA also collected the quotes from

providers that are scattered throughout this report.

Funding provided by:

The Alliance for Early Success

The Herzfeld Foundation

YoungStar in Wisconsin

Analysis of Data as of

July 2014

YOUNGSTAR PROGRESS REPORT # 5

DECEMBER 2014

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Acknowledgements:

Thanks to Coral Manning and the Department of Children and

Families (DCF) for their generous assistance in providing

YoungStar data; most of the data in this report was provided by

DCF.

WCCF is grateful for funding provided by:

The Alliance for Early Success

The Herzfeld Foundation

Oscar G. & Elsa S. Mayer Family Foundation

to support production of this report and WCCF efforts to promote

policies and investments that will improve the quality of early

learning for thousands of children across Wisconsin.

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Table of Contents

Summary of key findings and analysis 3

I. Children: Quality ratings of their child care settings

7

II. Programs: Quality ratings and YoungStar participation

14

III. YoungStar regions: Analysis 21

IV. Analysis 24

V. Appendices 26

A. Background of YoungStar 1. Summary of YoungStar 2. Five-Star Ratings 3. Implementation Background B. YoungStar Region Map

C. List of Figures D. More YoungStar Information

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SUMMARY: KEY FINDINGS AND ANALYSIS

Key Findings

Children in YoungStar:

1. Seventy-Two percent (72%) of Wisconsin Shares children are served in programs

rated 3-Star or higher on a 5-Star scale. YoungStar ratings data shows that more and

more children are in higher-rated programs in the fourth year of implementation. The

percent of children served by 3- to 5-Star rated programs increased from 47% to 72%

from July 2012 to July 2014, an impressive gain of 25 percentage points of children in

higher-quality settings.

2. A total of 31,625 children were in 3- to 5- Star programs in July 2014, compared to

17,671 in July 2012 and 4,526 in July 2011—a remarkable increase of children in higher

quality programs over a short time span.

3. The actual distribution of children by Star level is better overall than initially

projected in 2010. It is significantly better (17 percentage points higher) at the 3-Star

level but six percentage points worse at the 4-Star.

4. The average number of children served by the Wisconsin Shares child care subsidy

program has declined dramatically over the past six years, from a high of 59,501 in

2008 to 46,242 in the first eight months of 2014. Programs serving these subsidized

children are required to participate in YoungStar.

Programs in YoungStar:

5. Ratings data shows an increased number of higher-rated sites, but 56% of all

programs are still at the 2-Star level.

6. Ratings continue to vary dramatically across the four program types: licensed group

child care centers, licensed family child care, certified family child care, and public

schools. A much larger percentage of group child care centers have higher ratings than

the other three types.

7. Almost all (90%) of group child care centers rated 5-Star received their rating through

accreditation rather than the YoungStar point system.

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8. A large number of programs have been rated: 4,257 child care programs were rated

as of July 2014, compared to 1,516 in July 2011. Wisconsin is 4th in the nation in the

number of group child care centers and family child care programs rated by a QRIS

(Quality Rating and Improvement System).

9. 1,283 child care programs participated voluntarily in YoungStar as of July 2014. This

is an increase of 310 over the past two years. Programs serving children subsidized by

Wisconsin Shares are required to participate in YoungStar, but programs that do not

serve subsidized children are not required to participate in YoungStar.

10. There continues to be progress in moving away from automated ratings over the

past year. The percentage of programs choosing an automated (2-Star) rating has

dropped from 43.5% to 42.5%. The percentage that chose to take a technical rating

went up from 52% to 52.5% and for formal ratings, it went up from 4.5% to 5%.

Programs that take automated ratings are not assessed on quality indicators and are

not working with YoungStar technical assistance to meet higher quality indicators.

YoungStar Regions:

11. The six YoungStar regions vary appreciably in the number of children served (in

rated programs) as of July 2014. The Northern region has the smallest number of

children (2,281) and the Milwaukee region has the largest (22,068).

12. Regions vary in the percentage of children in higher rated programs. The Northern

and Western regions have the highest percentage of children in 2-Star programs. The

Southeastern (Kenosha/Racine) and Northeastern regions have the highest

percentage of children in programs rated 3 to 5 Stars.

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Analysis

1. What does it mean that close to three quarters (72%) of Wisconsin Shares

children are in programs with 3- to 5-Star ratings?

This is a major accomplishment for YoungStar that is designed to ensure access to

higher quality early childhood education for almost 32,000 children from low-income

families, and represents significant progress over the last 2-3 years.

2. Why has the number of children receiving Wisconsin Shares been declining?

Fewer children served by Wisconsin Shares has likely been caused by lost jobs due to

the recession, fraud prevention efforts, higher cost for parents, a significant decline in

the supply of regulated child care programs, a drop in child care programs participating

in Wisconsin Shares, and more parents choosing to use cheaper unlicensed child care.

However, it is difficult to determine which possible causes have had the greatest

impacts on the decline.

3. How are YoungStar and Wisconsin Shares related?

The Wisconsin Shares child care subsidy program is the foundation upon which

YoungStar has been built. Child care programs participating in Wisconsin Shares serve

children from working, low-income families, and these programs are required to

participate in the YoungStar quality rating and improvement system.

4. What is the “cost of quality” for programs to improve or maintain 3- to 5- Star

ratings?

In analyzing the cost of maintaining higher quality ratings (3, 4 or 5 stars) in a typical

mid-sized child care center, it was found that expenses outpaced income by an average

of $1,200 to $1,900 per child per year. The higher the star level, the bigger was the loss.

5. Why is there so much regional variation in quality?

Compared to two years ago, there is actually much less. Milwaukee has been targeted

for quality improvement efforts, especially in the area of staff education, and it seems to

be paying off.

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Background

This report is the fifth in a series of WCCF reports tracking the progress of

Wisconsin’s YoungStar program, a quality rating and improvement system

(QRIS) launched in 2011 to improve the quality of Wisconsin child care

programs. YoungStar focuses on children of low-income working families

receiving assistance from the Wisconsin Shares child care subsidy programs.

Programs not serving children subsidized by Wisconsin Shares can voluntarily

participate in YoungStar.

YoungStar rates the quality of child care programs on a 5-Star scale and is

administered in 6 regions of the state. The analysis in this report is based on

data as of the end of July 2014.

Programs are rated 1-Star if they do not meet health and safety standards, and

are prohibited from receiving Wisconsin Shares funding. Two-Star programs

meet basic regulatory standards for health, safety, program, and personnel

(prior to 2011, these were the only standards required to participate in Wisconsin

Shares). Star levels 3, 4, and 5 represent progressively improved quality, with an

emphasis on early learning and development.

For more background on YoungStar, the quality indicators, and a summary of

the program’s implementation history, see the Appendix at the end of this report.

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I. CHILDREN:

QUALITY RATINGS OF THEIR CHILD CARE SETTINGS

Good news. Close to three-quarters (72%) of Wisconsin Shares children are

served in programs rated 3-Star or higher:

The most important YoungStar metric is percentage of children from low-income

families receiving early care and education services in higher quality programs. When

YoungStar is analyzed by where the children are, the picture looks considerably brighter

than an analysis of child care programs and their ratings. The primary desired outcome

for YoungStar should be the impact on children. As of July 2014, nearly three-quarters

of the children (72%) funded by Wisconsin Shares are in programs rated 3-Star or

higher (51% at 3-Star, 5% at 4-Star, and 16% at 5-Star). Only about one-quarter (28%)

are in 2-Star programs.

Because center-based programs serve many more children than family child care

settings, and because center-based programs are generally rated higher (see Figures 9

and 10), the percentage of children served in higher quality programs is significantly

higher than the percentage of programs rated as higher quality. In fact, over three-

quarters (78%) of children in Wisconsin Shares were in licensed group centers as of

June 30, 2014. Only 12% were in licensed family programs, 6% in certified care, and

4% in school based settings.

So while 52% of programs have 2-Star ratings, only 28% of children are served in 2-

Star rated programs funded by Wisconsin Shares. And while only 48% of programs are

rated higher than 2 Stars, 72% of children attend programs rated at 3 Stars and above.

(See Figures 1 and 2)

3 1 ,6 2 5 c h ildre n are n ow in h ighe r

quality (3 -5 St ar) program s funde d by

Wis c on s in Sh are s

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Figure 1

One-Year Comparison: Providers and Children by Star Rating

Funded by Wisconsin Shares July 2013 & July 2014

2 Star

3 Star

4 Star

5 Star

Total

Programs by Star Rating July 2013

1,860

997

129

222

3,208

July 2014

1,534

1,044

144

251

2,974

Percent of Total Programs July 2013

58%

31%

4%

7%

100%

July 2014

52%

35%

5%

8%

100%

Children Served by Star Level July 2013

15,208

20,374

1,790

5,908

43,280

July 2014

12,190

22,318

2,216

7,091

43,815

Percent of Children Served by Star Level July 2013

35%

47%

4%

14%

100%

July 2014

28%

51%

5%

16%

100%

Note: Programs and children in this table have funding support from Wisconsin Shares,

and the data do not include 1283 rated programs that do not receive Wisconsin Shares

funding and the children they serve. Wisconsin Shares does not reimburse providers at

the 1-Star level for child care services.

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Upward trend: Ratings data identifies more children in higher-rated programs.

The number of Wisconsin Shares children in higher-rated programs (3- to 5-Star) has

substantially increased over the past three years. From July 2011 to July 2014, the

number of children funded by Wisconsin Shares in 3- to 5-Star rated programs has

increased from 4,526 to 31,625 (Figure 3).

Figure 3

Number and Percent of Wisconsin Shares-funded

Children by Star Ratings Over Time

(July 2011 - July 2014)

(Lower quality = 1- to 2-Star rating; Higher quality = 3- to 5-Star rating)

Year

Number of children in 1- to 2-Star rated programs

Percent of children in 1- to 2-Star rated programs

Number of children in 3- to 5-Star rated programs

Percent of children in 3- to 5-Star rated programs

July 2011

5,867

56%

4,526

44%

July 2012

19,572

53%

17,671

47%

July 2013

15,208

35%

28,072

65%

July 2014

12,190

28%

31,625

72%

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Substantial progress towards initial (2010) estimates of star level distribution.

The initial estimate of the distribution of Wisconsin Shares children across the various

Star levels was both more optimistic and more pessimistic than the actual distribution of

children in July 2014. A Legislative Fiscal Bureau paper in June 2010, provided an

estimate of the percentage of Wisconsin Shares children at each Star level from 2010

through 2015, based on a plan proposed by the Department of Children and Families

(DCF). Figure 4 demonstrates how those estimates compare to the actual ratings as of

July 2014.

The DCF five year estimates misjudged how quickly many programs would move from

two stars to three stars. So if we just look at lower quality (2-Star) versus higher quality

(3-5 Star (higher quality), we are exceeding those goals. However, there are

significantly fewer 4-Star programs than anticipated.

The percentage of children in 2-Star programs is quite a bit less than predicted, by 10

points, which is a good thing since those are of lower quality. The percentage of

children in 3-Star programs is much higher than anticipated, by a whopping 17 points. 4-

Star programs come out a disappointing six percentage points below the estimate, and

5-Star just one point off the predicted mark.

One explanation for differences above (i.e., less 4-Star programs than forecast) is that

almost all 5-Star programs got their rating through accreditation rather than on the 40

point scale YoungStar process. However, the combined percentage of programs with 3-

to 5-Star ratings exceeds the initial projections by 10 points. In the last two years the

focus has been on moving programs from 2-Star to 3-Star ratings. A similar effort could

help 3-Star programs move to a 4-Star rating, but because costs increase at higher

quality levels, it may be difficult to make significant progress without increased

financing.

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Figure 4

A Comparison of Initial Estimates and Actual Distribution of

WI Shares Children by YoungStar Quality Rating

Star Rating

Initial Estimate:

Children by YoungStar Rating

SFY 2013-14 *

Actual Data: Children by

YoungStar Rating July 2014

Difference: Positive or Negative

One Star

0%

0%

0

Two Stars

38%

28%

-10

Three Stars

34%

51%

+17

Four Stars

11%

5%

-6

Five Stars

17%

16%

-1

*Source: DCF and Legislative Fiscal Bureau, June 2010.

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Decline in children served by Wisconsin Shares.

As you can see from the chart below (Figure 5), there are over 13,000 fewer children

being served by Wisconsin Shares than there were six years ago. There was a high of

59,501 in 2008. As of the first eight months of 2014, the monthly average is 46,242-- the

lowest it has been over the past thirteen years. The decline in children served by

Wisconsin Shares is significant because the programs that serve those children are

required to participate in YoungStar, which is dedicated to improving and sustaining the

quality of early learning and development.

A key YoungStar goal is to prepare children from low-income families for school. With

fewer children receiving subsidies from Wisconsin Shares, the impact on school

readiness will decline.

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II. PROGRAMS:

QUALITY RATINGS AND YOUNGSTAR PARTICIPATION

Trend over time: Ratings data identifies an increased number of higher-rated

programs, but 56% are at the 2-Star level.

While the number and percent of children in quality settings under YoungStar may be

the most important metric, tracking the number and percent of quality child care

programs is also informative, giving a picture of the supply available for children and

families. A comparison of rated programs over the three-year period from July 2011 to

July 2014 shows a trend toward higher ratings. The number of child care programs at

higher rated levels (3-Star, 4-Star, and 5-Star) continued to grow, with 1,848 programs

rated at higher levels in July 2014, compared with 229 in July 2011 (see Figure 6).

Figure 6

Number of programs rated 3- to 5-Stars over time

July 2011

July 2012

July 2013

July 2014

229

1,172

1,698

1,848

This data includes ALL programs that are rated by YoungStar, not just those that take

Wisconsin Shares clients. Substantial improvement is shown here. Also, in interpreting

this data, note that many more total programs were rated over time.

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While the majority of programs are still at the 2-Star level, the percentage is declining: In

July 2011, over 84% of programs rated were at 2-Stars; one year later, in July 2012,

70% were at 2-Stars; two years later, in July 2013, 62% were at 2-Stars; and three

years later, in July 2014, only 56% were at 2-Stars. See Figure 7 for a percentage

breakout by Star levels as of July 2014.

In the twelve-month period July 2013 to July 2014, the general trend has been an

increase in both the number and percent of programs with higher ratings. As more

programs were rated and more programs took advantage of training offerings, technical

assistance, and micro-grants, there were significant increases in programs rated at the

3- to 5-Star levels.

In the twelve-month period, the number of programs rated 3- to 5-Stars increased by

150. The percentage of higher-rated programs rose from 37.5% to 43.5%. Meanwhile,

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over the same timeframe, the percentage of programs at 2-Stars dropped from 62% to

56%, and the number of 2-Star programs also shrank by almost 400. There has also

been a large overall decline in the total number of programs participating in YoungStar,

from 4,506 (plus 164 pending) down to 4,257 (with 183 pending). See Figure 8.

Figure 8

ALL Programs by Star Ratings Over the Last Year

July 2013 to July 2014

Date

July 2013

July 2014

July ’13 to July 2014

Provider Ratings

Number of programs by Star rating

Percent of Total

Number of programs by Star rating

Percent of Total

Change in Percentage

One Star

27

0.5%

21

0.5%

+/- 0

Two Stars

2,781

62%

2,388

56%

- 6%

Three Stars

1,209

27%

1,300

30.5%

+ 3.5%

Four Stars

164

3.5%

188

4.5%

+ 1%

Five Stars

325

7%

360

8.5%

+ 1.5%

TOTAL

4,506

100%

4,257

100%

+/- 0

This includes ALL programs rated by YoungStar, whether or not funded by Wisconsin

Shares. There are actually well over 200 fewer programs participating, but there have

been marked improvements in all areas. There are fewer lower quality two star

programs and more higher quality three to five star programs.

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Ratings broken out by the four program types

This section looks at quality ratings for the four different service delivery types that

comprise the 4,257 programs participating in YoungStar as of July 2014:

1. Licensed group child care centers (serving 9 or more children): 1,859 programs

2. Licensed family child care programs (serving 4-8 children): 1,350 programs

3. Certified family child care programs (serving 6 or less): 853 programs

4. Public school child care programs (mostly after-school): 195 programs 4,257 TOTAL

1. Licensed group child care centers: 67.5% rated at 3- to 5-Stars.

Almost two thirds of group child care centers participating in YoungStar were rated at 3-

to 5-Stars, a major increase from two years earlier, when only 55% were rated above 2

Stars. 17% of group centers are rated at 5 Stars. 32% are rated at the 2-Star level.

Group child care centers serving nine or more children are licensed for the health,

safety, and welfare of children, and must meet a rigorous set of rules and requirements.

Most programs serve 50 children or more, and many serve well over 100. Many group

child care programs have participated in private accreditation through the National

Association for the Education of Young Children (NAEYC), the city of Madison, or other

auspices over the last 15 years that have helped them verify high-quality standards and

enabled them to receive higher ratings in YoungStar.

2. Licensed family child care programs: 66% rated at the 1- to 2-Star level.

About two-thirds of family child care programs are rated at the 2-Star level or lower, with

only 34% at 3- to 5-Star levels. Licensed family child care programs serve 4 to 8

children and meet standards similar to group child care centers, but adapted for a

smaller setting. Accreditation efforts have been more recent for family child care, and

may offer an avenue for programs to move up the YoungStar scale.

3. Certified family child care programs: 92% rated at the 1- to 2-Star level.

Nearly all certified family child care programs are rated at the 2-Star level. These small

family child care homes are not required to be licensed, but must meet regulatory

standards considerably less stringent than licensing rules. A certified provider serves

less than four children under 7 years old unrelated to them (the threshold for family child

care licensing), but can serve as many as six children total if some are related or older

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than 6 years. Certification allows smaller family providers to receive Wisconsin Shares

funding.

4. Public school child care: 63% are at the 2-Star level.

Some public schools provide child care services. Few public schools – only 195 – are

participating in YoungStar currently. In July 2012, YoungStar began rating school-age

child care using quality standards designed for school-age services. Most school-age

child care services are in licensed child care settings, but some are provided by public

schools on-site.

Figure 9 provides details of each program type by Star level.

Figure 9

Child Care Programs Rated Broken Out by Provider Type

July 2014

Provider Type

1 Star

2 Star

3 Star

4 Star

5 Star

Total

Licensed group child care

7

598

832

113

309

1,859

Licensed family child care

10

886

343

63

48

1,350

Certified family child care

4

781

57

10

1

853

Public School child care

0

123

68

2

2

195

TOTAL

21

2,388

1,300

188

360

4,257

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Figure 10 provides a comparison of Star rating distribution by the four program types,

broken out by percent of programs rated 1 to 2 Stars and those rated 3 to 5 Stars.

Quality ratings under YoungStar are dramatically higher for group child care centers,

with 67.5% rated 3 to 5 Stars, than for all three other types.

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Data on number of programs rated:

4,257 child care programs were rated as of July 2014.

As of July 2014, a total of 4,257 programs had been rated on a scale of 1 to 5 Stars,

based either on an assessment of quality (including accreditation) or on a provider’s

decision not to be rated above a 2-Star level. At that time, there were 183 programs

whose rating was pending. Wisconsin is ranked 4th in the nation for the number of child

care programs participating in a Quality Rating Improvement System, according to 2014

data from BUILD Initiative’s QRIS Compendium.

Figure 11 illustrates the growth in child care programs rated over time.

Note: These statistics apply to all programs rated by YoungStar, including both those

receiving Wisconsin Shares funding and therefore required to participate, and other

child care programs that are not required to participate but do so voluntarily.

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III. ANALYSIS BY YOUNGSTAR REGIONS

The YoungStar program is divided into six regions (see Appendix B for a regional map).

This section looks at data for each region, including a breakout of children by Star

levels, and a comparison of each region based on its percentage of children enrolled in

programs at the 3- to 5- Star level.

Distribution of children by Star rating across regions.

Figure 12 shows the distribution of children funded by Wisconsin Shares by region and

by Star rating as of July 2014. As the above updated charts indicate, the trend shows

continued improvement in almost all areas. The Milwaukee and Kenosha/Racine

(Southeastern) regions especially demonstrate sustained gains in the number of

children in higher quality programs.

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Figure 12

Breakout of CHILDREN by Star Level of Program and by Region

(Children are funded by Wisconsin Shares) July 2013 & July 2014

Black = July 2013 data Red = July 2014 data

Region Two Stars

Three to Five

Stars Total

% 3-5 Stars Total Children

Kenosha/Racine

(Southeastern)

+ 13%

1,256

801

2,307

2,806

65%

78%

3,563

3,607

Milwaukee

+ 9%

8,475

6,968

12,408

15,100

59%

68%

20,883

22,068

Northeastern

+ 5%

1,273

959

4,394

4,620

78%

83%

5,667

5,579

Northern

+ 4%

967

781

1,547

1,500

62%

66%

2,514

2,281

Southern

+ 4%

1,988

1,640

5,390

5,609

73%

77%

7,378

7,249

Western

+ 4%

1,249

1,041

2,026

1,990

62%

66%

3,275

3,031

Total

+ 7%

15,208

12,190

28,072

31,625

65%

72%

43,280

43,815

Note: Programs rated at 1 Star are not eligible to receive Wisconsin Shares funding.

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Percent of children in higher quality programs across regions.

All regions are serving a significantly higher percent of children in 3-5 Star programs

compared to a year ago. However, as shown in Figure 12, there is quite a bit of

variation by region in percentage of children in programs rated 3, 4 or 5 Stars.

Northeastern, Kenosha/Racine (Southeastern), and Southern all come out above the

72% state average. Milwaukee, Northern, and Western are all somewhat lower.

The level of child care quality in each region reflects the development of the child care

supply over many years, likely influenced by such factors as the qualifications of the

child care workforce, the impact of welfare reform, the level of poverty, and the ability of

communities to build higher quality programs.

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IV. ANALYSIS

1. What does it mean that close to three quarters (72%) of Wisconsin Shares

children are in programs with 3- to 5-Star ratings?

This is a significant accomplishment for YoungStar and ensures access to higher quality

early childhood education for almost 32,000 children from low-income families. Over the

last two years, there has been a 25 percentage point increase in the number of kids in

3- to 5-Star settings, and a corresponding 25 point decrease in 2-Star enrollment.

Compared with two years ago, there are 13,954 more children in higher quality

programs and 7,382 fewer receiving lower quality child care.

2. Why has the number of children receiving Wisconsin Share been declining?

The drop in children served by Wisconsin Shares has likely been caused by lost jobs

due to the recession, fraud prevention efforts, higher costs for parents, less availability,

a drop in child care programs participating in Wisconsin Shares, and more people

choosing to use cheaper unlicensed child care. With fewer children receiving Wisconsin

Shares, fewer children will be in programs participating in the YoungStar quality rating

and improvement system.

Many child care programs serve middle- and upper-class families not eligible for

Wisconsin Shares. Some programs have decided to no longer serve Wisconsin Shares-

funded children because of the drop in reimbursement rates that have been frozen

since 2006 along with many authorizations being changed from enrollment-based to

attendance-based. Also, 2-Star programs received a 5% cut starting July 1, 2012, which

may have driven programs out of Wisconsin Shares. Providers often have a difficult

time collecting co-pays from parents, particularly when families are struggling.

For a detailed look at these issues, please see our blog posts from earlier this year:

http://www.wccf.org/wisconsin-shares-data-four-year-trends-2009-2013/

http://www.wccf.org/major-drop-regulated-child-care-programs-wisconsin/

http://www.wccf.org/fewer-children-served-payments-shrinking-wisconsin-

shares/

3. How are YoungStar and Wisconsin Shares related?

The Wisconsin Shares child care subsidy program is the foundation upon which

YoungStar has been built. Harry Belafonte used to sing, “House built on a weak

foundation, will not stand.” As mentioned above, there are many ways that Wisconsin

Shares has been weakened over the past eight years. In order for YoungStar to

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continue to be successful, the child care subsidy program needs to be strengthened.

Two improvements that could help do this are increasing the base reimbursement rates

to make up for eight years of losses due to inflation, and moving all authorizations to

enrollment based instead of attendance based.

4. What is the “cost of quality” for programs to improve or maintain 3- to 5- Star

ratings?

The Wisconsin Early Childhood Association (WECA) recently published a report

analyzing the cost of maintaining higher quality ratings in a typical mid-sized child care

center. Using the Early Care and Education Cost Model, they found that expenses

outpaced income by an average of $1,200 to $1,900 per child per year. The higher the

star level, the bigger was the loss. This is clearly unsustainable. For YoungStar to thrive

into the future, this needs to be addressed as soon as possible. Programs should be

rewarded for attaining and keeping higher star ratings, not taking the risk of going out of

business.

Link to the full report below:

www.wisconsinearlychildhood.org/assets/assets/Documents/StartingEarlyStartin

gNowWebSingle.pdf

5. Why is there so much regional variation in quality?

Compared to two years ago, there is actually much less variation. In 2012 there was a

30-point spread between the highest (Northeastern) and lowest (Milwaukee) in terms of

percentage of children in higher quality programs. As of 2013, that was down to a 19

point difference, mainly because the Milwaukee region improved by 25 percentage

points! There are now almost 4000 more children in the Milwaukee region enrolled in 3-

Star programs than are in 2-Star. Milwaukee has been targeted for quality improvement

efforts, especially in the area of staff education, and apparently it is paying off. Overall,

the biggest gap in 2014 is a 17 point difference between the highest (still Northeastern)

and lowest (Western and Northern are tied).

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VI: APPENDICES

Appendix A: Background

A1. Summary of YoungStar

YoungStar is a program of the Department of Children and Families (DCF) to improve

the quality of child care for Wisconsin children. YoungStar is designed to:

evaluate and rate the quality of care given by child care providers;

help parents choose the best child care for their kids;

support providers with tools and training to deliver high-quality early care; and

set a consistent standard for child care quality.

(Source: YoungStar website, Department of Children and Families,

http://dcf.wi.gov/youngStar )

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A2. Five-Star ratings

YoungStar evaluates the quality of care given by regulated child care providers and rates them from 1 to 5 Stars, with 5 Stars being the highest rating, similar to ratings for hotels, restaurants, or other types of businesses. A provider's Star rating is based on these criteria:

Educational Qualifications and Training

Learning Environment and Curriculum

Professional and Business Practices

Child Health and Well-Being Practices

(Source: YoungStar website, Department of Children and Families, http://dcf.wi.gov/youngStar )

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A3. Implementation Background

In November 2010, the DCF contracted with a consortium to deliver specified

YoungStar services in six regions in the state. The Consortium is made up of three

agencies: Wisconsin Early Childhood Association, Supporting Families Together

Association, and Celebrate Children Foundation.

The Consortium is responsible for:

YoungStar administration for six regional areas of the state;

technical assistance to early care and education providers;

providing ratings via observation and assessment;

administering micro-grants to help programs improve; and

public outreach and communication to provide parents with concrete and understandable information on how to choose child care programs.

The table below shows the tiered reimbursement schedule adopted by the State Legislature in the 2013-15 budget:

Tiered Reimbursement Schedule

Program Rating Impact on Wisconsin Shares Payments

One Star Prohibited from receiving Wisconsin Shares payments

Two Star Minus 5 percent, effective July 2012

Three Star No change

Four Star Plus 10 percent, effective July 2013

Five Star Plus 25 percent, effective January 2013

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Appendix B: YoungStar Regions

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Appendix C: List of Figures

Figure 1 One-Year Comparison: Providers and Children by Star Rating Funded by

Wisconsin Shares, July 2013 & July 2014 p8

Figure 2 WI Shares Children by Star Level, July 2014 p9

Figure 3 Number and Percent of Wisconsin Shares-funded Children by Star

Ratings Over Time (July 2011 - July 2014) p10

Figure 4 A Comparison of Initial Estimates and Actual Distribution of WI Shares

Children by YoungStar Quality Rating

p12

Figure 5 Children in WI Shares Monthly Averages, 2004-2014 p13

Figure 6 Number of programs rated 3- to 5-Stars over time p14

Figure 7 Programs by Star Rating, July 2014 p15

Figure 8 ALL Programs by Star Ratings Over the Last Year, July 2013 to July 2014

p16

Figure 9 Child Care Programs Rated Broken Out by Provider Type, July 2014

p18

Figure 10 Quality rating distribution by program types, July 2014 p19

Figure 11 Number of child care programs with YoungStar ratings p20

Figure 12 Breakout of CHILDREN by Star Level of Program and by Region

(Children are funded by Wisconsin Shares) July 2013 & July 2014 p22

Figure 13 Percent of Wisconsin Shares children in programs rated 3, 4, or 5 Stars by

region, 2013 & 2014 p23

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Appendix D: More information about YoungStar and

Early Childhood Issues

Wisconsin Council on Children and Families has five progress reports on

YoungStar as well as many other early education publications: http://www.wccf.org

YoungStar information on the Department of Children and Families website: http://dcf.wi.gov/youngstar/

The YoungStar Consortium published a report called “Moving Wisconsin Forward”: http://wisconsinearlychildhood.org/assets/assets/Documents/2014ysconsortiumreportweb.pdf